We previously heard a rumor that Microsoft could be charging makers of their Windows 8 tablet up to $100 per license for each device, although the price seemed to vary depending on the manufacturer.
Now according to a recent report from Digitimes, Microsoft is rumored to be charging tablet makers around $50 to $65 per Windows RT license and around $60 to $100 for a Windows 8 license.
Microsoft has released licensing rates for OEM Windows 8, including US$60-80 for Windows 8, US$80-100 for Windows 8 Pro (with Office) and US$50-65 for Windows RT (with Office), according to Taiwan-based notebook supply chain makers.
Impact on Manufacturers
Considering that Microsoft has been clever by offering the Windows 8 upgrade to existing users for just $38, we would have thought that they would try and keep the costs of the tablet versions of their OS down for manufacturers if they want the platform and Windows 8 tablets to succeed. The pricing strategy for Windows 8 and Windows RT licenses could significantly impact the overall cost of the tablets, which in turn affects the retail price for consumers. Higher licensing fees might discourage some manufacturers from adopting Windows 8 or Windows RT, potentially limiting the variety of devices available in the market.
For instance, smaller manufacturers with tighter profit margins might find it challenging to absorb these costs, leading them to either increase the price of their tablets or opt for alternative operating systems like Android, which is available for free. On the other hand, larger manufacturers might be able to negotiate better deals with Microsoft or offset the costs through higher sales volumes.
Comparison with Competitors
When comparing these licensing fees to those of competitors, it’s clear that Microsoft is positioning itself differently in the market. Google’s Android OS, for example, is open-source and free for manufacturers, which has contributed to its widespread adoption and the proliferation of Android-based devices. Apple’s iOS, while not available for licensing, is tightly integrated with its hardware, allowing Apple to control both the software and hardware aspects of its devices, ensuring a seamless user experience.
Microsoft’s approach with Windows 8 and Windows RT aims to provide a unified experience across different devices, from desktops to tablets. However, the licensing fees could be a double-edged sword. While they might ensure a certain level of quality and support, they could also deter some manufacturers from adopting the platform, especially in the highly competitive and price-sensitive tablet market.
Moreover, the inclusion of Office in the Windows RT license could be a significant selling point for business users and educational institutions, potentially justifying the higher cost. However, for the average consumer, the added value might not be as apparent, making it crucial for Microsoft and its partners to clearly communicate the benefits of choosing a Windows-based tablet over other options.
In conclusion, Microsoft’s licensing strategy for Windows 8 and Windows RT tablets is a calculated move that balances the need for revenue with the goal of widespread adoption. While the fees might pose a challenge for some manufacturers, the potential benefits of a unified Windows ecosystem and the inclusion of Office could make it an attractive option for others. As the tablet market continues to evolve, it will be interesting to see how these dynamics play out and whether Microsoft’s approach will pay off in the long run.
Source BGR
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